A Primary Benefit of 401(k)plans Is That Payments Made by Employees

question 60

True/False

A primary benefit of 401(k)plans is that payments made by employees into the plan are pretax, so the employee pays no tax on those dollars until after he or she retires or withdraws the money.

---

Definitions:

HR Department

The segment of an organization focused on recruitment, management, and direction of people who work in the organization, also dealing with employee benefits, training, and compliance.

Small Organizations

Businesses or institutions characterized by a smaller workforce, lower revenues, or limited operational scope.

Scientific Management

A management theory that analyzes work flows to improve economic efficiency, especially labor productivity.

Worker Productivity

The amount of goods and services that a worker produces in a given amount of time.